"Bessent wrote on X early Thursday that the US would do "what is necessary" to help Argentina, triggering a surge in the bonds. A little later, he told CNBC that this didn't mean putting money into the country, a caveat that sent the notes back down again. They are now edging lower. The U.S. had previously outlined at least three possible options to help the South American nation, including a $20 billion swap line, the repurchase of Argentine debt and direct currency purchases."
""We're giving them a swap line, we're not putting money into Argentina," he said in the CNBC interview. Argentine dollar bonds due in 2035 are down 0.3 cent on the dollar at 51.45 cents, declining for a sixth day. The peso opened little changed on Thursday at 1,424.5 to the dollar. The limit of a trading band agreed with the International Monetary Fund is currently at 1,481.7. Bessent also said in his post on X that he spoke Wednesday with Economy Minister Luis Caputo, who he said will be traveling to Washington in coming days to advance discussions on "options for delivering financial support.""
U.S. Treasury Secretary Scott Bessent reiterated support for Argentina’s Javier Milei, saying the U.S. will do "what is necessary" to help. He clarified that support does not involve putting U.S. money into Argentina, indicating a swap line rather than direct cash injections. The U.S. had outlined options including a $20 billion swap line, debt repurchases, and currency purchases. His comments caused Argentine bonds to surge and then retreat; 2035 dollar bonds traded at 51.45 cents, down 0.3 cent. The peso opened at 1,424.5 per dollar within the IMF-agreed band. Economy Minister Luis Caputo will travel to Washington to advance support discussions. The government deployed dollars and exchange controls to defend the peso amid political uncertainty.
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